Typ proximity a next generation connection Proximity Research Report The Future of Web TV How Does Generation Y Watch Media and What it Means for Advertisers by Eric Scheetz Spring 2010 Table of Contents Executive Summary 1 Web TV and its Popularity 2 TV’s Not the Only Media Moving towards the Internet 2 Focus Group Report 3 So What Does this Mean for Advertisers 4 Recommendation 6 Attachment 1: Ad Revenue Loss 7 References 8 Executive Summary The old way of watching television is rapidly dying in our culture, less and less we find families watching prime time shows together and groups of friends watching a shared favorite together. Generation Y is now accustomed to getting information almost immediately and whenever they please. The popularity of Twitter, text and Blackberry messaging and smart phones show how Gen-Y has grown to want their information immediately. This trend has spilled into the use of websites to watch television programs. Hulu.com has emerged as the leading TV streaming site, but many others have followed suit and given Gen-Y the options they have been searching for.
Web TV and its Popularity Hulu.com has emerged has the leader in TV streaming due to its free content and limited advertisements. So far Hulu has used an advertising base model to first cover costs then to generate revenue. Users have fallen for its premium content and limited ad time, but this is not the only outlet for on-demand video. ESPN3.com has come out within the last year providing sports fans the opportunity to view live games from their computers and smart phones. Advertisements pop up every now and then, and banners can be found on the margins, but it remains to be a solid option for sports fans. Why are these alternative viewing methods becoming so popular? Its simple people have become accustomed to the luxury of receiving information immediately, especially Generation Y. The culture of this generation is unlike any other, growing up with the internet, smart phones, and social websites has spoiled them with immediate access to information and constant communication with peers. TV’s Not the Only Media Moving towards the Internet Movies have also made the transition to the web. Netflix has come to the forefront as the leading movie rental outlet. With fees as low as $8.99 per month, and DVD’s sent directly to your house it is no wonder that this site has surpassed Blockbuster and all other movie rental stores. On top of these great features Netflix has added another viewing option; having movies streamed directly to your laptop. This feature has shot the site to a whole new level of popularity. Generation Y can appreciate this new feature by watching movies in the library, dorm rooms, or anywhere else their laptop can go. Focus Group Report Where do you primarily watch TV shows? All of them said it is a combination of watching shows on cable and on the internet. Most primetime shows are watched at some other time on the internet because most of them stated they were too busy to watch them at their scheduled time at night. How many movies do you see in the theaters compared to movies you watch at home? Primarily they all watched movies at home. The general consensus was that going to the movie theater was more of a social event, and that if it was not a big group going or a date they would rather download they movie illegally. Mike went the most claiming he sees a movie in the theaters about once a month; the others were about one every 2-3 months. Pat went to the theater the least since he has not been there in 6 months. Would you rather buy or rent movies on DVD or on digital files? The group agreed that when seeing a movie for the first time they would rather rent it, but if it was a movie they like they would buy it. All of them except Lance however have not bought a movie in years. Lance said he probably buys a movie every month or two. How important is the size and quality of the screen you use to watch TV and movies? There was a mix in opinion here. Lance said that the bigger the screen the better, and that he hated watching movies on small screens. Fran and Pat however said that they will watch it on anything and liked watching video of their laptops or phones. Mike and Joe both said they like the bigger screens but it would not bother them if they only had a smaller screen. Quality was not as important of a factor. Have you illegally downloaded video? Do you believe you are doing something wrong while stealing multimedia off the web? They all said that they illegally download videos weekly. None of them believe they are doing something wrong. Some justifications were that they know so many other people are doing it and there were not going to get caught or fined for it. Also they said it is so easily available and there are many sources so they feel they are allowed to do it. Lance’s feeling towards downloading illegally was, “There’s so many people and groups after your money, when you can get something for free take it.” Findings This focus group session revealed the following about Towson University students: ·They watch illegally steamed and downloaded movies and shows on their computer, and they do not feel it is wrong to do so ·Going out to movies is looked at as more of a social event than as entertainment ·Most of them do not buy DVDs So What Does This Mean for Advertisers Advertising professionals have a hard task at hand. They can only advertise on the sites that are legitimate, and this prohibits from reaching their entire target audience. The advertisements they do run, however should be carefully chosen. After a look at Generation Y and their behaviors, the advertisements should be quick, straight to the point campaigns targeting males and females 15-35. The products they try to sell should be products that are new, and cannot be easily substituted for. Trying to sell a new release DVD would be pointless to a group who watch movies for free online. Tech products, video games, alcohol, and fast-food restaurants should all be saturating this new advertising outlet. Not to say other advertisements would not be useful on the internet, but marketers should be aggressively targeting Generation Y. For example, tech companies spend billions of dollars a day for advertising, (see attachment 1), they should spread more of that money to sites that offer instant access to shows and entertainment. Recommendation By no means does this report claim that the end of TV as we know it is over. Simply the ways in which people are entertained are expanding. Advertisers need to catch up to this trend and market the right products via these outlets. The focus should be on: ·High-tech devices, such as phones, flat screen TVs, gaming consoles, and computers ·Alcohol, soft drinks, and fast food restaurants ·Low-to-Mid range automobiles ·Promotions for clubs, bars, sporting events, and concerts These are just a few ideas on how advertising space should be maximized on video streaming and movie sites. Since Generation Y has taken a liking to these sites for their ease, price, and accessibility, companies should exploit their knowledge and promote products online that this group will buy. Attachment One
proximity
a next generation connection
Proximity Research Report
The Future of Web TV
How Does Generation Y Watch Media and What it Means for Advertisers
by Eric Scheetz
Spring 2010
Table of Contents
Executive Summary 1
Web TV and its Popularity 2
TV’s Not the Only Media Moving towards the Internet 2
Focus Group Report 3
So What Does this Mean for Advertisers 4
Recommendation 6
Attachment 1: Ad Revenue Loss 7
References 8
Executive Summary
The old way of watching television is rapidly dying in our culture, less and less we find families watching prime time shows together and groups of friends watching a shared favorite together. Generation Y is now accustomed to getting information almost immediately and whenever they please. The popularity of Twitter, text and Blackberry messaging and smart phones show how Gen-Y has grown to want their information immediately. This trend has spilled into the use of websites to watch television programs. Hulu.com has emerged as the leading TV streaming site, but many others have followed suit and given Gen-Y the options they have been searching for.
Web TV and its Popularity
Hulu.com has emerged has the leader in TV streaming due to its free content and limited advertisements. So far Hulu has used an advertising base model to first cover costs then to generate revenue. Users have fallen for its premium content and limited ad time, but this is not the only outlet for on-demand video. ESPN3.com has come out within the last year providing sports fans the opportunity to view live games from their computers and smart phones. Advertisements pop up every now and then, and banners can be found on the margins, but it remains to be a solid option for sports fans. Why are these alternative viewing methods becoming so popular? Its simple people have become accustomed to the luxury of receiving information immediately, especially Generation Y. The culture of this generation is unlike any other, growing up with the internet, smart phones, and social websites has spoiled them with immediate access to information and constant communication with peers.
TV’s Not the Only Media Moving towards the Internet
Movies have also made the transition to the web. Netflix has come to the forefront as the leading movie rental outlet. With fees as low as $8.99 per month, and DVD’s sent directly to your house it is no wonder that this site has surpassed Blockbuster and all other movie rental stores. On top of these great features Netflix has added another viewing option; having movies streamed directly to your laptop. This feature has shot the site to a whole new level of popularity. Generation Y can appreciate this new feature by watching movies in the library, dorm rooms, or anywhere else their laptop can go.
Focus Group Report
Where do you primarily watch TV shows?
All of them said it is a combination of watching shows on cable and on the internet. Most primetime shows are watched at some other time on the internet because most of them stated they were too busy to watch them at their scheduled time at night.
How many movies do you see in the theaters compared to movies you watch at home?
Primarily they all watched movies at home. The general consensus was that going to the movie theater was more of a social event, and that if it was not a big group going or a date they would rather download they movie illegally. Mike went the most claiming he sees a movie in the theaters about once a month; the others were about one every 2-3 months. Pat went to the theater the least since he has not been there in 6 months.
Would you rather buy or rent movies on DVD or on digital files?
The group agreed that when seeing a movie for the first time they would rather rent it, but if it was a movie they like they would buy it. All of them except Lance however have not bought a movie in years. Lance said he probably buys a movie every month or two.
How important is the size and quality of the screen you use to watch TV and movies?
There was a mix in opinion here. Lance said that the bigger the screen the better, and that he hated watching movies on small screens. Fran and Pat however said that they will watch it on anything and liked watching video of their laptops or phones. Mike and Joe both said they like the bigger screens but it would not bother them if they only had a smaller screen. Quality was not as important of a factor.
Have you illegally downloaded video? Do you believe you are doing something wrong while stealing multimedia off the web?
They all said that they illegally download videos weekly. None of them believe they are doing something wrong. Some justifications were that they know so many other people are doing it and there were not going to get caught or fined for it. Also they said it is so easily available and there are many sources so they feel they are allowed to do it. Lance’s feeling towards downloading illegally was, “There’s so many people and groups after your money, when you can get something for free take it.”
Findings
This focus group session revealed the following about Towson University students:
· They watch illegally steamed and downloaded movies and shows on their computer, and they do not feel it is wrong to do so
· Going out to movies is looked at as more of a social event than as entertainment
· Most of them do not buy DVDs
So What Does This Mean for Advertisers
Advertising professionals have a hard task at hand. They can only advertise on the sites that are legitimate, and this prohibits from reaching their entire target audience. The advertisements they do run, however should be carefully chosen. After a look at Generation Y and their behaviors, the advertisements should be quick, straight to the point campaigns targeting males and females 15-35. The products they try to sell should be products that are new, and cannot be easily substituted for. Trying to sell a new release DVD would be pointless to a group who watch movies for free online. Tech products, video games, alcohol, and fast-food restaurants should all be saturating this new advertising outlet. Not to say other advertisements would not be useful on the internet, but marketers should be aggressively targeting Generation Y. For example, tech companies spend billions of dollars a day for advertising, (see attachment 1), they should spread more of that money to sites that offer instant access to shows and entertainment.
Recommendation
By no means does this report claim that the end of TV as we know it is over. Simply the ways in which people are entertained are expanding. Advertisers need to catch up to this trend and market the right products via these outlets. The focus should be on:
· High-tech devices, such as phones, flat screen TVs, gaming consoles, and computers
· Alcohol, soft drinks, and fast food restaurants
· Low-to-Mid range automobiles
· Promotions for clubs, bars, sporting events, and concerts
These are just a few ideas on how advertising space should be maximized on video streaming and movie sites. Since Generation Y has taken a liking to these sites for their ease, price, and accessibility, companies should exploit their knowledge and promote products online that this group will buy.
Attachment One
References
Bennett, R. (2009, November 22). Retrieved April 25, 2010, from Proximity: http://proximityblog.blogspot.com/2009/11/how-video-is-changing-internet.htmlBurg, M. (2010, May 18). MediaDailyNews. Retrieved May 18, 2010, from Media Post: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=128464
Hulu. (2007, March). Retrieved April 16, 2010, from http://www.hulu.com/about
Mermigas, D. (2009, July 6). On Media. Retrieved April 29, 2010, from Media Post: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109139
Parrack, D. (2009, September 21). Retrieved May 1, 2010, from Proximity: http://proximityblog.blogspot.com/search/label/video
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